Boulogne-Billancourt, 16 March 2009 - Vallourec, world leader in the production of seamless steel tubes, today announced that it will invest € 80 million in new production capacities to meet the growing needs of the nuclear power industry. These investments concern 3 production sites of Vallourec: Valinox Nucléaire in France and Valtimet in France and the United States:
World leader in the field of stainless steel and nickel alloy tubes for steam generators for nuclear power plants, Valinox Nucléaire, will invest in order to increase the annual production capacity of its Montbard plant (Côte d'Or, France) from 1,800 km of tubes in 2008 to 4,500 km of tubes in 2011.
World leader in the field of welded titanium and stainless steel tubes for secondary circuits for nuclear power plants, Valtimet will double production capacity for nuclear products at its plants of Venarey-les-Laumes (Côte d'Or, France) and Brunswick (Georgia, United-States).
Increasing electricity demand and the need to reduce global CO2 emissions are driving a nuclear renaissance resulting in an increase in the number of nuclear projects worldwide. Installed nuclear capacity is projected to increase by over 300 GW between 2006 and 20301. This new-build market, combined with life extension of existing capacity, is creating strong demand for specific tubular components exceeding the available offer. These planned investments will enable Vallourec to respond to the requirements expressed and confirmed by
Pierre Verluca, Chairman of the Management Board stated:
"These investments are fully in line with our strategy of growing our activities in the energy market, and notably in the nuclear industry, where Vallourec has built an expertise and leadership position over the past 30 years. Vallourec will continue to accompany its customers in their development and to elaborate with them the solutions needed to answer their most demanding technological challenges."
1 Source Areva (April 2008) mid-range of international agency projections.